Are Thing Really More Expensive???

MonkeyMama · #1 (**permalink**) 10-21-2006, 07:36 AM

I keep hearing that everything is so much more expensive these last few years than they were in say the 50s, factoring inflation and everything. I am curious of the input from the older generations on this board. It might be hard to compare, but when factoring inflation do you think food and basics are really that more expensive???

I just keep hearing how the average household isn't saving and it is because everything is so expensive and inflation is insane. I look at all the fancy electronics, new cars, McMansions and I am thinking people in the 50s did not have all this crap. This is why everything is so expensive and no one is saving money. Geez!!!!

I feel strongly that healthcare has gone up substantially and that this is an area that really hurts people. When you have a healthy family and are paying $10k/year for health insurance, yeah that is pretty hard to swallow. But the food, gas, necessities, they are the smallest part of our budget. Housing has certainly gone up, that one I will give you as well. I think these are more to the point of the items squeezing certainly the younger generations - housing and healthcare. PLUS employers today overall are not offering pensions, healthcare, or other benefits like they used to.

I guess I find it ironic all of these articles talking about the high cost of food and clothing and gas, because to me these are not the issues that are affecting me, and certainly not those around me.

Diolla · #2 (**permalink**) 10-21-2006, 07:52 AM

I think gas is hurting some because of long commutes and housing is hurting some because of the areas they live in.

I think that there is more stuff people think they need like cable, high speed internet, big screen TV's, best and fastest computers, cell phones... (not that I wouldn't like to have all of that and do have some)

When I first started working we usually got a 2-3% raise each year and now we seldom get one at all, that may make it seem like prices are high even with mild inflation.

I agree health insurance has gone up, to put it in perspective when I started it was $25 a month no co-pay and $500 deductible, now (20 years later) it is $275 a month, 20% co-pay to a limit of $2500 per person.

I live close to work in a low COL area so in many ways I am doing better than many of the people I meet on these boards. I am not however where my Mom and Dad were at this age.

LuxLiving · #3 (**permalink**) 10-21-2006, 07:53 AM

But back in the day if families had one wage earner, bought a nice home, 1 car and had frugal meals all week and had a treat of MEAT on Sundays, had a single phone, no air-conditioning, their couple of sets of clothes fit in one small closet combined and a single dresser, took Sunday drives and went to the picture show perhaps twice a month for entertainment, then Heck yeah, things were cheaper but not proportionately so.

IMHO - It's MORE that we are currently over-consuming on a major basis! Compare above scenario with today's lifestyles. Sad indeed how greedy we have become.

Ima saver · #4 (**permalink**) 10-21-2006, 08:07 AM

I have to agree with Lux. I lived in the 50's. We had a modest house, with one bathroom, we had one black and white tv, one telephone, one car. My father worked, my mother did not. There was very little going out. You would visit with relatives on sundays. I never remember eating out in a restaurant.
My parents saved and paid cash if they wanted something. My mother made our clothes.
I can't believe all the "toys" that people have now. We spent our time, playing outside or riding our bikes all over town. we had very few snacks and a cold drink was a real treat. I guess that is why most kids were skinny back then.

tinapbeana · #5 (**permalink**) 10-21-2006, 08:09 AM

it's true that today's lifestyles contain more of, well, everything, than in eras before. but at the same time, i don't think it's necessarily 'greed' per se, i think it's visibility. in the 50s example given before, the visible examples on TV and in magazines generated a lot of trends in spending: convenience foods, kitchen gadgets, the onset of the 2 car household. people saw a lifestyle in the media and sought to emmulate it.

nowadays the media is doing the same thing, only the lifestyle is several 'steps up' (think 'my supersweet 16', 'bridzillas', 'cribs', 'pimp my ride', etc). the shows geared towards youth show extremely affluent lifestyles, and that is what the youth attempt to emmulate.

i don't think it's greedy, so much as sad that the average consumer is so easily swayed by what they see in the media portrayed as 'normal' extravegance.

Ima saver · #6 (**permalink**) 10-21-2006, 08:39 AM

I agree, tv is a big influence on people, especially young people. I rarely watch it, so I have not kept up with all the "new" things on the market.

JanH · #7 (**permalink**) 10-21-2006, 10:08 AM

Yeah, growing up we rarely had any restaurants to eat at even if we wanted to! I didn't have a McD's in town until I was a senior in high school. We also had few stores to shop in. My parents could have bought new furniture every year or a new car, but we would have been in bad shape financially if they had. When we first started out married, you couldn't cash a check without a credit card for an ID and we couldn't get a credit card. Credit wasn't issued like it is now. We didn't get credit offers in the mail every day--not even once a year. You had to go to your bank or store and request and they were a lot stricter about who got a card. We had money coming in cos we worked, but since Hubby was a co-op student, we moved a lot and they wouldn't give us a credit card cos our jobs switched back and forth to the town we co-oped in. Nowadays, my daughter has no income at this time, but she receives as many offers in my house as we do. No wonder we all get in debt. They make it look so easy. The internet rather than the tv is worse for my kids. They see all these things they would love to have on websites and there is so much out there! I don't know if things are relatively more expensive or that we just buy more. Maybe a little of both.

meaghanchan · #8 (**permalink**) 10-21-2006, 10:23 AM

Some things are more expensive, but some things are a lot less expensive... I'm still quite young, but haven't yet noticed inflation taking a toll on my budget, except where things like rent and health care are concerned.

sarah · #9 (**permalink**) 10-21-2006, 02:54 PM

I find this thread fascinating. Are the things people buyiing now enriching their lives or simply getting them into debt. Those of you who lived through the 50s. Would you be willing to go back to the technology of those years?

JanH · #10 (**permalink**) 10-21-2006, 02:59 PM

Oh wow. I think I'd miss the microwave the most.

Bookie · #11 (**permalink**) 10-21-2006, 04:33 PM

Things are more expensive.

In 1959 a VW Beetle had a list price of $1959.
Gasoline was 25 cents a gallon
A quart of PBR was 35 cents
Tuition for a quarter at state U. was $75
First-class postage stamp was a nickle
Cigarettes cost 50 cents from a vending machine.
Comic books cost 15 cents

JanH · #12 (**permalink**) 10-21-2006, 04:45 PM

Yep, but I think my mom said they made $160 a month in the military.

JanH · #13 (**permalink**) 10-21-2006, 04:45 PM

Wonder if there is a way to see cost versus salaries now compared to the same stats then?

sarah · #14 (**permalink**) 10-21-2006, 04:52 PM

What is PBR?

Jacklad · #15 (**permalink**) 10-21-2006, 05:06 PM

Quote:

Originally Posted by sarah

What is PBR?

Not an American, but I'd guess Pabst Blue Ribbon.

Jackie

tinapbeana · #16 (**permalink**) 10-21-2006, 05:23 PM

Quote:

Originally Posted by Bookie

Things are more expensive.

In 1959 a VW Beetle had a list price of $1959.
Gasoline was 25 cents a gallon
A quart of PBR was 35 cents
Tuition for a quarter at state U. was $75
First-class postage stamp was a nickle
Cigarettes cost 50 cents from a vending machine.
Comic books cost 15 cents

USA Today article regarding 1959 being a different era quotes average US salary in 1959 was $4743, minimum wage was $1 per hour (0.021% of the average salary). current average american salary is $39795 and minimum wage is $5.15 (0.013% of the average salary).

salary has increased 839% since '59. stamps have increased 780%. gas has increased 876% (2.19 vs 0.25 per gal). minimum wage has only increased 515%.

ergo, folks living on minimum wage now can buy less with their money than someone living on minimum wage in '59. stuff doesn't cost more now, but some folks make significantly less.

JanH · #17 (**permalink**) 10-21-2006, 05:56 PM

Cool stats. Neat to see.

tabbycat31 · #18 (**permalink**) 10-22-2006, 03:18 PM

I wasnt around until 1980, but just as there are several things that cost more, there are also several (mostly technology) that cost less. I had a computer growing up (my mom's company provided it) that was an Apple II that was worth several thousand dollars. YOu can get a computer for $500 today. Same with cellphones (and they're not the size of a brick either), TVs, VCR, etc.

Ima saver · #19 (**permalink**) 10-22-2006, 03:24 PM

I lived in the 50's! I would certainly go back to the technology of back then. I would not miss the microwave, the vcr, cell phones. Most of the hi tech things, I don't have and don't intend to. I would even give up this computer!

shelbylovesmelby · #20 (**permalink**) 10-22-2006, 03:41 PM

I agree we've fallen into the temptations presented to us by marketers & retailers to accumulated a great deal of tangable goods.

I agree the raise thing stinks as my dh has only seen one or two annual rasies since 9/11, but yet the company can afford to build new failities and buy out other existing competitors facilites. Raises aren't even keeping up with the costs of living.

I really think not only is the consumer manipulated by mass media & marketing but so many of us are trying to "keep up with the jonses" & going into severe debt for it!